Pages

FPM Moot-Points:

Tweet Me Please!

Saturday, 14 February 2015

YAALA! In With the New and Out With the Old!

"You're 'Avin A Laugh Alright!" a.k.a YAALA! - In this
FPM digest written in a concise nature than our regular exhaustive deliberating
posts, we aim to share some of our fund- and investments-related observations
and activities. We anecdotally and analytically question and challenge
established investment wisdom.

With the approach of Global Divestment Day on 14th
February 2015 to show our support for a fossil free future, FPM target
investors in BP Capital Management funds (nothing to do with the British oil
giant) to exit their investments. We understand some energy sector investors
have already bolted for the exit doors since the more than 50% drop in crude
oil prices from the summer of 2014.

While FPM on first-impressions reputation
respect the veteran oil tycoon and head of BP Capital, T. Boone Pickens. We
understand Mr Pickens' energy investment companies are for the chopping blocks! Or at least
into “Alt M&A” play. While Mr
Pickens is a legendary and constant promoter of the energy industry, having a created
multi-billion dollar energy company before concentrating on investing in them, by forming
BP Capital in 1996, he’s time has come and gone. In With the New and Out With
the Old in his environmentally damaging sponsorship of dirt energy companies.

Aside of his regular promotion of
his oil / gas views focused on the USA via his blog website, we notice even today his
opposition to Barack Obama’s Government policy to prevent Trans-Alaska
pipeline and the Keystone pipeline projects.

He’s one of the largest sponsors
of the US energy industry over the last half century yet selfishly or for his
investors he seems ignorant of Climate Change concerns. Whether he is
passionate in his fear-mongering beliefs (see
below quote) or is routinely endorsing energy industry as he has instinctively
done, we dare to suggest that the venerable oil entrepreneur is merely protecting
his proverbial laurel crown.

"Should the president make
this view a reality, America’s energy security will be dangerously undermined,
and the prospects of a prolonged downturn in gasoline prices that benefit
consumers to the tune of $720 per year will be in serious jeopardy… President
Obama’s recent proposal to extend wilderness status to 12 million acres of the
Arctic National Wildlife Refuge threatens the viability of America’s biggest
oil pipeline: the Trans-Alaska pipeline" Source: T. Boone Pickens,
Forbes 10 January 2015

We can only transition towards an
alternative energy future if the mainstay die-hard fossil fuel energy and
investment companies move out of the way, or sincerely steer their business
model towards newer renewable clean energy sources.This is the sector in transition transactional and brokerage value to FPM's creative-destruction model of business.

FPM have analysed the performance
of BP Capital Management's top 10 holdings, and other select energy firms. We will disseminate this
investment review of the energy sector by calling investors such as London
Pension Fund Authority to urge
divestment or switch recommendations, in the coming weeks. Fossil fuel divestment
on climate change concerns isn’t just about “environmentalist-placating” policies
but to broker the change and face of capitalism in an increasingly globalised plutocracy
which is nudging the future inhabitants of the Earth towards the precipice of
destroying humanity through the destruction of his habitat.

Why Is A Fossil Free Future Important?

Climate change is the greatest challenge
humanity has encountered. Warming in excess of 2°C will have catastrophic
consequences. In order to have a chance of staying below this maximum upper
limit of warming 80% of known fossil fuel reserves must not be burnt.

The fossil fuel industry currently holds
vast carbon reserves which if burnt would result in emissions 5 times larger
than what it is deemed to be safe. All available evidence suggests that fossil
fuel companies intend to burn the reserves within their control. In addition,
companies such as Shell are actively trying to discover new reserves, often in
environmentally sensitive regions.

If it is wrong to damage the world we
live in, then it is wrong to profit from that damage. Responsible investors
should no longer be profiting from the destructive activities of these
companies. Source FPM and 350.org